A business broker is a person or firm engaged in the business of enabling other businesses to get sold.
Business brokers typically value the business, advertise it for sale, handle the initial discussions with prospective buyers and assist the owner of the business in selling it. They are paid either a fixed fee or a percentage of the sale price. Buyers sometimes retain a business broker to find them a particular kind of business.
In the United States, licensing of business brokers varies by state, with some states requiring licenses, some not. Some states require licenses if the broker is commissioned but not if the broker works on an hourly fee basis. State rules also vary about recognizing licensees across state lines, especially for interstate types of businesses like national franchises. Some states require either a broker license or law license to even advise a business owner on issues of sale, terms of sale, or introduction of a buyer to a seller for a fee.
This form is a general Non-Disclosure and Commission Agreement Between a Business Broker and a Prospective Buyer.
Maine Nondisclosure and Commission Agreement Between Business Broker and Prospective Buyer is a legal document that outlines the terms and conditions governing the relationship between a business broker and a potential buyer during the sale or purchase of a business in the state of Maine. This agreement ensures that both parties maintain confidentiality, protect sensitive information, and establish the broker's commission for their services. The agreement begins by clearly identifying the parties involved, including the business broker, the prospective buyer, and the business being sold. It also highlights the purpose of the agreement, which is to facilitate discussions and negotiations between the buyer and the seller, with the assistance of the broker. Confidentiality is a crucial aspect covered in this agreement. The buyer acknowledges that all information provided by the seller or the broker regarding the business is confidential and should not be disclosed to any third parties without prior written consent. Likewise, the buyer agrees not to use any confidential information for personal gain or competitive purposes, aiming to protect the seller's trade secrets, customer data, financial records, and other proprietary information. The agreement specifies that the buyer's obligation to maintain confidentiality extends beyond the termination of the agreement, emphasizing the ongoing nature of this responsibility. It may also include provisions regarding the return or destruction of any confidential documents or materials provided. Regarding the broker's commission, multiple types of agreements may exist in Maine. These can include: 1. Exclusive Right to Sell Agreement: This type of agreement grants the broker the sole right to market and sell the business during a specified period. If the business is sold to any party during this period, the broker is entitled to the agreed-upon commission, regardless of who brings the buyer. 2. Open Listing Agreement: In an open listing agreement, the broker has a non-exclusive right to sell the business. The seller retains the right to engage multiple brokers or sell the business independently. The broker only receives a commission if they are the procuring cause of the sale. 3. Net Listing Agreement: A net listing agreement sets a specific minimum price that the seller wishes to receive from the sale. Any amount exceeding this price becomes the broker's commission. This type of agreement is less common and might have certain legal considerations, as it may create conflicts of interest between the broker and the seller. The commission terms are detailed in the agreement, specifying the percentage or fixed fee that the broker will receive upon a successful sale. It also outlines when the commission is due, such as upon the closing of the transaction or in installments based on certain milestones. Additionally, the agreement may contain clauses relating to dispute resolution, governing law, and other miscellaneous provisions to address any potential issues that may arise during the negotiation and purchase process. Overall, the Maine Nondisclosure and Commission Agreement Between Business Broker and Prospective Buyer plays a crucial role in establishing a legally binding relationship between the parties involved, protecting confidential information, and ensuring the broker's compensation for their services.Maine Nondisclosure and Commission Agreement Between Business Broker and Prospective Buyer is a legal document that outlines the terms and conditions governing the relationship between a business broker and a potential buyer during the sale or purchase of a business in the state of Maine. This agreement ensures that both parties maintain confidentiality, protect sensitive information, and establish the broker's commission for their services. The agreement begins by clearly identifying the parties involved, including the business broker, the prospective buyer, and the business being sold. It also highlights the purpose of the agreement, which is to facilitate discussions and negotiations between the buyer and the seller, with the assistance of the broker. Confidentiality is a crucial aspect covered in this agreement. The buyer acknowledges that all information provided by the seller or the broker regarding the business is confidential and should not be disclosed to any third parties without prior written consent. Likewise, the buyer agrees not to use any confidential information for personal gain or competitive purposes, aiming to protect the seller's trade secrets, customer data, financial records, and other proprietary information. The agreement specifies that the buyer's obligation to maintain confidentiality extends beyond the termination of the agreement, emphasizing the ongoing nature of this responsibility. It may also include provisions regarding the return or destruction of any confidential documents or materials provided. Regarding the broker's commission, multiple types of agreements may exist in Maine. These can include: 1. Exclusive Right to Sell Agreement: This type of agreement grants the broker the sole right to market and sell the business during a specified period. If the business is sold to any party during this period, the broker is entitled to the agreed-upon commission, regardless of who brings the buyer. 2. Open Listing Agreement: In an open listing agreement, the broker has a non-exclusive right to sell the business. The seller retains the right to engage multiple brokers or sell the business independently. The broker only receives a commission if they are the procuring cause of the sale. 3. Net Listing Agreement: A net listing agreement sets a specific minimum price that the seller wishes to receive from the sale. Any amount exceeding this price becomes the broker's commission. This type of agreement is less common and might have certain legal considerations, as it may create conflicts of interest between the broker and the seller. The commission terms are detailed in the agreement, specifying the percentage or fixed fee that the broker will receive upon a successful sale. It also outlines when the commission is due, such as upon the closing of the transaction or in installments based on certain milestones. Additionally, the agreement may contain clauses relating to dispute resolution, governing law, and other miscellaneous provisions to address any potential issues that may arise during the negotiation and purchase process. Overall, the Maine Nondisclosure and Commission Agreement Between Business Broker and Prospective Buyer plays a crucial role in establishing a legally binding relationship between the parties involved, protecting confidential information, and ensuring the broker's compensation for their services.
